National Insurance for the self-employed

National Insurance for the self-employed

If you are self-employed you will normally pay class 2 National Insurance and class 4 National Insurance.

If you are self-employed as an actor, special rules applied until 5 April 2014. Under these special rules, actors paid Class 1 National Insurance, rather than Class 2 and 4 National Insurance, on income from some contracts, even thought there were treated as self-employed for income tax purposes. From 6 April 2014, actors should simply pay class 2 and class 4 National Insurance, as other self-employed workers.

Class 2 National Insurance

Once you start self employment you become liable to pay Class 2 National Insurance. The way class 2 National Insurance is paid will change from 6 April 2015.

From the tax year 2015-16, most people will pay class 2 National Insurance along with class 4 National Insurance and income tax (in January self-assessment payments). This also means that rules for those with small earnings from self-employment will change. People with profits of less than the Small Profit Threshold (£5,965 for 2015-16), will not have to pay any class 2 National Insurance. They will not need to claim an exemption in advance.